Bombay HC raps cops for not taking down statement of builder

The builder was in fresh trouble as the State Bank of India (SBI) last week informed Justice S J Kathawalla that it had filed a criminal case of cheating and forgery against Metallica Industries, of which Jain is a shareholder.TNN | December 06, 2016, 15:30 IST

MUMBAI: The Bombay high court on Monday directed the joint commissioner, Economic Offences Wing (EOW) of Mumbai police, to appear in court after expressing anger that an investigating officer had not taken the statement of builder Jitendra Jain despite taking statements of 37 others in an FIR it was probing against him.

The builder was in fresh trouble as the State Bank of India (SBI) last week informed Justice S J Kathawalla that it had filed a criminal case of cheating and forgery against Metallica Industries, of which Jain is a shareholder. The bank’s counsel submitted documents on Monday to show that the company had given “forged commencement certificates (CC) till 17 floors’’ and received Rs 40 crore funding for a commercial project, Kamla Industrial Park, in Kandivli (W).

“Has there been any arrest yet?’’ Justice Kathawalla asked the EOW officer, summoned to submit a status report on the probe. When told there was one recent arrest, the judge noted it was only after his order last week. “What have you done for six months?’’ he asked.

The EOW had observed that the CC till seven floors submitted to the bank appeared to be “non-genuine”. The bank took up the matter with the civic body. Officials said endorsements on the CC appeared to be forged, and the original CC was only till plinth level.

The FIR came to light after Ashik Bhuta moved the HC against Metallica for delivery of four galas he had booked in 2012, and for which an SBI loan of Rs 94 lakh was taken.

Kamla Industrial Park Gala Owners’ Welfare Association supported Bhuta and said that 268 out of 389 galas constructed by the builders were sold for Rs 77 crore. Some members also paid the collector’s fees of Rs 3.7 crore. But the builder stopped construction since January 2014, after completing seven floors.

Jitendra Jain, his brother Jinendra, brother-in-law Ketan Shah and their family members, who are partners in several companies, known as Kamla Group, are shareholders of Metallica, observed Justice Kathawalla. “These three have undertaken several development projects, collected crores of rupees from purchasers of flats and galas but have not delivered the premises, as agreed, even after six to seven years,’’ the judge added.

Currently, the Goods and Services Tax (GST) is levied at 12 per cent on payments made for under-construction property or ready-to-move-in flats where completion certificate has not been issued at the time of sale.